BIRLA CABLE 2023-24 Annual Report Analysis

Wed, 10 Jul

BIRLA CABLE has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

BIRLA CABLE Income Statement Analysis

• Operating income during the year fell 13.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 35.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.9% in FY24 as against 8.0% in FY23.
• Depreciation charges increased by 1.5% and finance costs increased by 15.1% YoY, respectively.
• Other income grew by 232.1% YoY.
• Net profit for the year declined by 32.8% YoY.
• Net profit margins during the year declined from 4.2% in FY23 to 3.2% in FY24.

BIRLA CABLE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,922	6,855	-13.5%
Other income	Rs m	45	150	232.1%
Total Revenues	Rs m	7,967	7,005	-12.1%
Gross profit	Rs m	630	405	-35.8%
Depreciation	Rs m	106	108	1.5%
Interest	Rs m	129	149	15.1%
Profit before tax	Rs m	440	298	-32.3%
Tax	Rs m	110	76	-30.7%
Profit after tax	Rs m	329	221	-32.8%
Gross profit margin	%	8.0	5.9
Effective tax rate	%	25.1	25.7
Net profit margin	%	4.2	3.2

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BIRLA CABLE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -23.5%.
• Long-term debt stood at Rs 741 million as compared to Rs 640 million during FY23, a growth of 15.8%.
• Current assets fell 11% and stood at Rs 3 billion, while fixed assets rose 28% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 5 billion during FY23, thereby witnessing a fall of 1%.

BIRLA CABLE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,294	2,510	9.4
Current Liabilities	Rs m	1,614	1,235	-23.5
Long-term Debt	Rs m	640	741	15.8
Total Liabilities	Rs m	4,607	4,581	-0.6
Current assets	Rs m	3,370	2,996	-11.1
Fixed Assets	Rs m	1,233	1,584	28.5
Total Assets	Rs m	4,607	4,581	-0.6

BIRLA CABLE Cash Flow Statement Analysis

• BIRLA CABLE's cash flow from operating activities (CFO) during FY24 stood at Rs 158 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -317 million, an improvement of 43.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 152 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -6 million from the Rs 5 million net cash flows seen during FY23.

BIRLA CABLE Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-78	158	-
Cash Flow from Investing Activities	Rs m	-221	-317	-
Cash Flow from Financing Activities	Rs m	305	152	-49.9%
Net Cash Flow	Rs m	5	-6	-

Current Valuations for BIRLA CABLE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.4, an decline from the EPS of Rs 11.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 248.0, stands at 33.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 25.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	264.1	228.5
TTM Earnings per share	Rs	11.0	7.4
Diluted earnings per share	Rs	11.0	7.4
Price to Cash Flow	x	8.6	25.4
TTM P/E ratio	x	11.3	33.6
Price / Book Value ratio	x	1.7	3.3
Market Cap	Rs m	4,005	8,370
Dividends per share (Unadj.)	Rs	2.5	1.8

Ratio Analysis for BIRLA CABLE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY24, from 2.1x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 3.0x during FY24, from 4.4x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 8.8% during FY24, from 14.4% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 13.7% during FY24, from 19.4% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 8.1% during FY24, from 10.0% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.1	2.4
Debtors’ Days	Days	997	1,137
Interest coverage	x	4.4	3.0
Debt to equity ratio	x	0.3	0.3
Return on assets	%	10.0	8.1
Return on equity	%	14.4	8.8
Return on capital employed	%	19.4	13.7

To see how BIRLA CABLE has performed over the last 5 years, please visit here.

BIRLA CABLE Share Price Performance

Over the last one year, BIRLA CABLE share price has moved up from Rs 169.7 to Rs 248.0, registering a gain of Rs 78.4 or around 46.2%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for BIRLA CABLE and quarterly results for BIRLA CABLE)